Abstract

The Household Income/Basic Amenities Survey (HIS/BA) 2009 is the latest income survey carried out by the Department of Statistics, Malaysia after the last survey conducted in 2007. The survey is implemented twice in five years. The publication provides data on income, poverty and basic amenities at national and state levels for citizens only.

The main objectives of the survey are as follows: - collect information on income distribution pattern of households;m - identify the poverty groups; and - to identify the accessibility of basic amenities by poor households.

Data from the survey are used by the government as inputs for the formulation of national development plan especially in preparing the Tenth Malaysia Plan.

Geographic coverage

The survey covered both urban and rural areas in Malaysia except the Orang Asli Enumeration Block (EBs) in Peninsular Malaysia. Usually the EBs that lie in the interior areas are not included in the sampling frames. However, for the latest survey, the Department expanded its coverage to include these EBs.

Analysis unit

• Households;
• Individuals.

Universe

The survey covered households staying in private living quarters (LQ). The institutional households, that is, those living in hostels, hotels, hospitals, old folks homes, military and police barracks, prisons, welfare homes and other institutions were excluded from the coverage of the survey.

Kind of data

Sample survey data [ssd]

Sampling procedure

Sampling frame

The frame used for the selection of sample for HIS/BA 2009 was based on the National Household Sampling Frame (NHSF) which was made up of EBs created for the 2000 Population and Housing Census. EBs are geographical contiguous areas of land with identifiable boundaries. On average, each EB contains about 80 to 120 living quarters. Generally, all EBs are formed within gazetted boundaries i.e. within administrative districts, mukim or local authority areas.

The EBs in the sampling frame are also classified by urban and rural areas. Urban areas are as defined in the 2000 Population and Housing Census. Urban areas are gazetted areas with their adjoining built-up areas which had a combined population of 10,000 or more at the time of the 2000 Population and Housing Census. All other gazetted areas with a population of less than 10,000 persons and non-gazetted areas are classified as rural.

Built-up areas are defined as areas contiguous to a gazetted area and have at least 60 per cent of their population (aged 10 years and over) engaged in nonagricultural activities as well as having modern toilet facilities in their housing units.

Urbanisation is a dynamic process and keeps changing in line with progress and development. Thus the urban areas for the 1991 and 2000 censuses do not necessarily refer to the same areas, as areas fulfilling the criteria of urban continue to increase or grow over time.

Sample design

A two-stage stratified sampling design was adopted and the levels of stratification are as follows: i) Primary stratum - made up of states in Malaysia ii) Secondary stratum - made up of urban and rural as defined in para 6.5 and formed within primary stratum

Samples are drawn independently within each level of the secondary stratum. The units for first stage sample selection are the EBs while the second stage units are the LQs within the EBs. All households and persons within the selected LQs are canvassed. At every stage of selection, the units are selected systematically with equal probability within each level of the secondary stratum.

Sample size

The sample size required is based on the relative standard error of the previous survey for each stratum and state. Other factors such as cost and availability of staff are also taken into considerations in determining the sample size.

The sampling procedures are more fully described in "Malaysia Household Income and Basic Amenities Survey 2009 - Report" pp. 93-96.

Mode of data collection

Face-to-face [f2f]

Sampling error estimates

Sampling error is a result of estimating data based on a probability sampling, not on census. Such error in statistics is termed as relative standard error (RSE) and is given in percentage. This is used as an indicator to the precision of the parameter under study. In other words, it reflects the extent of variation with other sample-based estimates. For the HIS/BA 2009, the mean monthly gross household income for Malaysia was RM4,025 with an RSE of 0.63 per cent. In other words, the standard error (SE) is approximately RM25. Assuming that the mean household income is normally distributed, the confidence interval for the estimated mean income can be calculated. Based on a 95 percent confidence level (alpha = 0.05), the mean monthly household income was found to be in the range of RM3,975.75–RM4,074.89 monthly.

In 2024, there were around **** million Malaysian households in the country, an increase compared to around **** million households in the previous year. The increase in household numbers over the years coincided with the decreasing size of Malaysian households. Importance of households as a unit in society Households form a fundamental unit in society and the decisions taken at the household level shape and affect the economic, social and demographic processes of a country. A household is generally classified as a group of people living in one dwelling, and its members are not necessarily related to one another. Households as economic participants are both consumers of goods and services, and suppliers of labor and capital, whereas its composition and size reflect changing social norms and demographics. How Malaysian households are changing The decrease in the fertility rate in Malaysia mirrored the decrease in household size. In 2022, the average Malaysian household was made up of 3.8 persons, compared to 4.1 in 2016. However, the size of urban households in Malaysia was significantly smaller than rural ones. This could be a contributing factor to the higher poverty rates in rural areas in Malaysia – rural households need to support more members on a significantly lower income than those of urban households.

This bar chart displays urban population living in areas where elevation is below 5 meters (% of total population) by capital city using the aggregation average, weighted by population in Malaysia. The data is about countries per year.

Abstract

Household Expenditure Survey 2009/10 was used to compile information on the level and patterns of consumption expenditure of private households. It was also used to update the weighting patterns and to determine the items in the basket of goods and services for the compilation of the Consumer Price Index for Malaysia.

The objectives of HES are to: - gather information on the level and pattern of consumption expenditure by household on a comprehensive range of goods and services; - determine the goods and services to be included in the basket of the Consumer Price Index (CPI); - update the CPI weights which is a measure of inflation rate in the country.

Geographic coverage

The survey covered both urban and rural areas in Malaysia except the Orang Asli Enumeration Block (EBs) in Peninsular Malaysia. Usually the EBs that lie in the interior areas are not included in the sampling frames. However, for the latest HES, the Department had expanded its coverage to include these EBs.

Analysis unit

• Households
• Individuals

Universe

The survey only covered households staying in private living quarters (LQ). The institutional households, that is, those living in hostels, hotels, hospitals, old folks homes, military and police barracks, prisons, welfare homes and other institutions were excluded from the coverage of the survey.

Kind of data

Sample survey data [ssd]

Frequency of data collection

Once in 5 years

Sampling procedure

Sampling Frame The frame for HES 2009/10 sample selection was based on the National Household Sampling Frame (NHSF) which was made up of EBs created for the 2000 Population and Housing Census. EBs are geographically contiguous areas of land with identifiable boundaries. On average, each EB contains about 80-120 LQs. Generally, all EBs are formed within gazetted boundaries, i.e. within administrative district, mukim or local authority areas.

The EBs in the sampling frame were also classified by urban and rural areas. Urban areas were as defined in the 2000 Population and Housing Census. Urban areas are gazetted areas with their adjoining built-up areas which has a combined population of 10,000 or more at the time of 2000 Population and Housing Census. All other gazetted areas with a population of less than 10,000 persons and non-gazetted areas are classified as rural. Built-up areas are defined as areas contiguous to a gazetted area and has at least 60 per cent of their population (aged 10 years and over) engaged in non-agricultural activities as well as having modern toilet facilities in their housing units.

Urbanisation is a dynamic process and keeps changing in line with progress and development. Thus, urban areas for the 1991 and 2000 censuses may not necessarily refer to the same areas, as these urban areas continue to increase and grow over time.

The classification of areas by stratum is as follows:

Stratum     Number of Population
(a) Metropolitan    75,000 and over
(b) Urban Large   10,000 to 74,999
(c) Urban Small   1,000 to 9,999
(d) Rural    All other areas

For sampling purposes, the above broad classification was found to be adequate for all states and W.P. Kuala Lumpur, Putrajaya and Labuan. However, for Sabah and Sarawak, due to inaccessibility, the rural stratum had to be further stratified based on the time taken to reach the area from the nearest urban centre.

For purposes of tabulation by urban and rural, the strata were combined as follows: Metropolitan + urban large = Urban Urban small + all rural = Rural

Sampling Design A two-stage stratified sampling design was adopted and the level of stratification is as follows: Primary stratum - made up of the states in Malaysia, including W.P. Kuala Lumpur, Putrajaya and Labuan. Secondary stratum - made up of selected towns, others towns and rural stratum formed within the primary stratum.

Mode of data collection

Face-to-face [f2f]

Sampling error estimates

Data obtained from surveys or research based on probability sample may encounter two types of errors, i.e. sampling and non-sampling errors.

Sampling Error Sampling error is a result of estimating data based on probability sampling, not on census. Statistically, these errors are referred to as Relative Standard Errors, denoted by RSE and expressed in percentage. This error is an indication of the precision of the parameter under study. In other words, it reflects the extent of variation as compared with other sample-based estimates.

For HES 2009/10, the average monthly household expenditure for Malaysia is RM2,190 with RSE 1.2 per cent. In absolute terms, the standard error (SE) is approximately RM26. With the assumption that the average monthly household expenditure is normally distributed, the confidence interval for the estimated average monthly household expenditure can be calculated. Based on a 95 percent confidence level (alpha=0.05), the average monthly household expenditure was found to be in the range of RM2,139-RM2,241 per month.

Non-sampling Error To ensure high quality data, several steps were taken to minimise non-sampling errors. Unlike sampling errors, these errors cannot be measured and can only be overcome through several administrative procedures. These errors may arise as a result of incomplete survey coverage, weakness in the frame, feedback errors, non-response errors, errors during data processing such as editing, coding and data capture.

Response errors are likely to occur due to differences and difficulties in interpreting the questions, be it on the part of the enumerators or respondents. To minimise these errors, intensive trainings were conducted for the enumerators as well as for the supervisors. In addition, random checks were carried out on households that were already canvassed by the enumerators to verify the validity of the information recorded. To ensure the completeness of the survey coverage, the sampling frame is frequently updated and the LQs were selected after the completion of EB listing exercise.

For HES 2009/10, there were no substitution for non-response cases, such as refusal to co-operate or no one at home. The calculation of weights was based on actual responses. In order to obtain respondents' co-operation, a wide scale publicity of the survey was launched through the electronic and print media. To reduce the editing and processing errors, several consistency checks were created, either manually or computer aided, to ensure the quality and reliability of data.

In 2022, ethnic Chinese households had the highest mean monthly household income in Malaysia, at around ****** Malaysian ringgit. This was more than ***** ringgit higher than Bumiputera households. Despite the implementation of affirmative action through Article 153 of the Malaysian constitution, the economic position of the Bumiputera vis-à-vis other ethnicities still left much room for improvement. Historical policies, ethnicity, and the urban-rural divide The Bumiputera make up the majority of the Malaysian population, yet have one of the lowest average monthly household incomes in Malaysia. This economic disparity could be explained by the effects of colonial policies that kept the Bumiputera largely in the countryside. This resulted in an urban-rural divide that was characterized by ethnicity, with the immigrant Chinese and Indian laborers concentrated in the urban centers, a demographic pattern that is still evident today. There was a considerable difference in urban and rural household incomes in Malaysia, with urban household income being around ***** ringgit more than rural households. This was largely due to the fact that wages in urban areas had to keep up with the higher cost of living there. This thus impacted the average monthly incomes of the largely rural-based Bumiputera and the largely urban-based ethnic Chinese. This visible wealth inequality has led to racial tensions in Malaysia, and it is still one of the problem in the country amidst a new government led by Prime Minister Anwar Ibrahim, who was elected in 2022.

In 2023, the urban population in Malaysia reached approximately 27.65 million people. In the last decade, the urban population in Malaysia has increased by more than five million people, indicating an upward trend in urbanization. Rapid urbanization In 2023, approximately 78 percent of Malaysia’s population lived in urban areas and cities. This puts Malaysia as one of Southeast Asia’s most urbanized countries. The metropolitan area of Greater Kuala Lumpur had a population of more than eight million in that year, making it Malaysia’s biggest urban area. However, about twice as many Malaysians lived in cities with half a million inhabitants or less. Urban-rural divide For many Malaysians, urbanization brought about more and better economic opportunities and job prospects. The average monthly income for urban households was more than 3,000 Malaysian ringgit higher than that of rural households. Poverty rates in rural areas were also significantly higher than that in urban areas. Even so, the countryside still holds a nostalgic place in the hearts of Malaysians, encapsulated in the romanticized idea of the ‘kampung’ or Malay village.